Over the range of output for which the average product of labor curve is negatively sloped, the average variable cost curve is positively sloped
Indicate whether the statement is true or false
TRUE
You might also like to view...
What happens to U.S. GDP when foreign countries experience prosperity?
A) It increases because the United States will export more product to those countries. B) It does not change because U.S. GDP is not affected by other countries' prosperity. C) It decreases because the foreign countries will be able to export more at a lower cost. D) It decreases because the foreign countries will now buy more of their own products.
When the Bretton Woods system was set up, the United States agreed initially to buy and sell gold at a price of ________ per ounce
A) $24 B) $35 C) $42 D) $48
What can account for the negative slope of the marginal revenue product curve?
A) Diminishing marginal utility B) Diminishing marginal returns C) Monopsony power D) All workers eventually begin slacking. E) none of the above
Answer the following statements true (T) or false (F)
1) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. Beta would prefer terms of trade at, or close to, 1X = 1½Y. 2) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. If Alpha had produced 20X and 30Y and Beta had produced 30X and 20Y before specialization and trade, then we can say that the gains from specialization and trade are 10X and 10Y. 3) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 20 units of X. By devoting all its resources to Y, Alpha can produce 30Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. There is no basis for trade between Alpha and Beta because Beta has an absolute advantage in the production of both goods. 4) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 20 units of X. By devoting all its resources to Y, Alpha can produce 30Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. Alpha would prefer terms of trade at, or close to, 1X = 2 / 3 Y.